Walt Disney’s quarterly results topped Wall Street expectations today as visitors to its US theme parks increased spending in the first three months of the year and the company saw an unexpected rise in Disney+ streaming customers.
Disney is seeking to increase profits from its streaming services as traditional television declines, and to expand its popular theme park and cruise line businesses, all in the midst of a shaky US economy.
“We remain optimistic about the direction of the company and our outlook for the remainder of the fiscal year,” Disney CEO Bob Iger said in a statement.
The company posted adjusted earnings per share of $1.45 for January to March, ahead of the $1.20 consensus forecast of analysts polled by LSEG.
Revenue rose 7% to $23.6 billion. Analysts had expected $23.14 billion. Operating income came in at $4.4 billion.
Disney forecast adjusted earnings per share of $5.75 for fiscal 2025, an increase of 16% from the prior fiscal year.
The company reiterated guidance for 6% to 8% operating income growth in the parks-led Experiences division during the fiscal year, and for double-digit percentage operating income growth during that time in the entertainment unit.
Disney said it picked up 1.4 million customers for the Disney+ streaming service during the just-ended quarter. Three months ago, it had warned of a modest decline in Disney+ subscribers following a price increase.
Its Hulu service added 1.1 million customers during the quarter, and operating income at the streaming division rose to $336m. A year earlier, operating income stood at $47m.
The entertainment unit reported total operating income of $1.3 billion, a 61% increase from the previous year.
At the Experiences unit, operating income rose 9% to $2.5 billion. Attendance rose at US parks and guests spent more, Disney said. The company also saw an increase in cruise ship bookings with the launch of a new vessel, the Disney Treasure.
Disney stock has fallen 17% this year compared with a 4.7% decline in the S&P 500 index. The shares have fallen 6.6% since April.
